Cost of living

How New Zealand’s cost of living compares really depends on what country you’re coming from and what part of New Zealand you settle in.

But in general, while some things may seem more expensive and others cheaper, overall the cost of living in New Zealand is comparable to what you’ll find in any OECD country.

You’ll find we offer the same sort of consumer goods you’re used to, at competitive prices. Costs for imported items like cars, electrical and computer equipment and petrol are similar to what you'd find in Australia or other similar countries.

To give you more of an idea - one independent international survey ranked Auckland 61st in the world in terms of its cost of living, and Wellington 83rd, far better than other major cities.

More expensive cities included Hong Kong (2), Singapore (4), Shanghai (6), London (12), New York (16), Guangzhou (15), Sydney (31) and Melbourne (47) - showing that comparatively, New Zealand’s major metropolitan areas are more affordable than those in other countries.

Depending where you're from, grocery supplies may cost more than you're used to.

Goods and services tax (GST)

New Zealand has a ‘Goods and Services’ tax (GST) that is added to the price of most things you buy.

GST currently applies at 15%.

GST doesn’t apply to rent on a home, apartment, flat or other accommodation. It also doesn’t apply to financial transactions, like bank charges, or to income.

Prices you see advertised are required by law to include GST, but you should always look for the phrase ‘incl GST’. Sometimes businesses will quote a price excluding GST because it looks cheaper.

Migrant stories

Silvia Canessa, Italy

“In Italy - a family of four - you need a couple of salaries just to reach the end of the month”. Once the family had been in New Zealand a few weeks they felt reassured that things were cheaper and they could live on Fabio’s salary.

Typical prices in New Zealand

The government’s Statistics Department has a publication called New Zealand in Profile which lists the prices of some common purchases in 2015:

Bread - white sliced loaf (600g)
NZ$1.55

Milk - standard, 2 litres
NZ$3.60

Fish and chips
NZ$5.91

Apples (kg)
NZ$2.52

Meat - lamb chops (kg)
NZ$13.89

Beer - glass (400ml)
NZ$5.87

Petrol - 91 octane per litre
NZ$2.11
(That works out to be NZ$9.59 per gallon)

GP/doctor’s visit - adult
NZ$37.14

Other typical prices (as at January 2016):

Washing machine
NZ$600–1500

42” LED-LCD flat screen TV
NZ$600–1500

Round of golf
NZ$30–100

Cup of coffee (flat white)
NZ$5.00

Big Mac
NZ$6.00

Movie ticket
NZ$14-20

Pair of jeans
NZ$80–150

Car - Ford Focus (2.0L, 5 door)
NZ$36,350

The average family budget

Every three years or so our government Statistics Department surveys what households are actually spending. Here’s where the average New Zealand weekly household budget went last time they looked, in 2013.

table caption

Expenditure type

NZ$

per cent

Food

192.50

17.3

Alcoholic beverages, tobacco etc.

29.50

2.7

Clothing and footwear

31.60

2.8

Housing and household utilities

272.90

24.6

Household contents and services

48.80

4.48

Health

27.10

2.4

Transport

158.30

14.2

Communication

35.80

3.2

Recreation and culture

107.20

9.6

Education

18.40

1.7

Miscellaneous goods and services

101.70

9.2

Other expenditure

116.30

10.5

Sales, trade-ins, and refunds

-28.80

-2.6

Total net expenditure

1,111.40

100

Planning your finances

Newly arrived people sometimes find that the cost of living in New Zealand is more than they expected. Salaries for some professionals may be below equivalent roles in Europe and the USA, and our physical location and small population means some imported goods are more expensive.

Before you book your plane ticket it's a good idea to research the type of lifestyle you'll be able to afford here. Then you’ll be able to settle into Kiwi life and enjoy our great country without any financial surprises.

To find out the cost of things in New Zealand you can look at online stores and cost comparison websites. You’ll find some links below to get you started.

It may also be useful to look at the information available on the Government’s Sorted website to ensure outgoings versus income is going to stack up for you.

The cost of living in New Zealand is comparable to what you’ll find in any OECD country.

What you might earn

Average personal income from wages and salaries in 2014 was NZ$51,532. However many households have other people working too, and for households receiving wages and salaries, average annual income from all sources was NZ$88,712.

Obviously earnings vary widely according to what you do. There are various government and privately operated websites that have guides to the salaries being paid for various different careers.

Food costs

It costs NZ$91-109 a week to feed an adult male, according to this 2014 survey by the University of Otago. It has full details by region, sex and age.

Most New Zealand supermarkets offer online grocery shopping. As an experiment, try pricing the weekly shop you do at home on one of their websites. Remember that Kiwi supermarkets regularly have special offers, so you may well pay less in store.

Two supermarket chains to look for on the internet are New World and Countdown.

Vehicle costs

Most people in New Zealand find they need a car. Many buy their cars second hand. Privately-operated TradeMe Motors can give you a good idea of what used cars cost here.

An annual expense involved with owning a car is the vehicle license or registration (rego). Registration costs vary according to the car’s make and its age. As an example however registration for a late model, petrol engined Ford Focus 2L currently costs NZ$271.27.

All cars also need to be tested for a Warrant of Fitness. That will cost you NZ$50-80 (not including any repairs that may be necessary). How often you need to have your car tested will depend on the age of the car.

If you choose a diesel engine car, you will also pay road user charges (RUC) which are calculated per kilometre.

The long, skinny geography of New Zealand means that fuel prices can vary quite widely from region to region. Our national motorist’s organisation, the Automobile Association (AA), keeps an eye on prices in Auckland, Wellington and Christchurch through its online petrol watch service.